The Redbubble (ASX:RBL) share price is deflating by 8% today

The company’s shares are having a tough year, and today isn’t making things any easier.

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The wind seems to have gone out of Redbubble Ltd (ASX: RBL) shares today despite no news being released by the company. At the time of writing, the Redbubble share price is trading at $3.14 – 8.19% lower than yesterday’s closing price.

Today’s fall leaves the Redbubble share price around 57% lower than its all-time high of $7.35, which it hit in January 2021.

So, what’s the online art-focused marketplace been up to lately? Let’s take a look.

Redbubble’s 2021

Investors are driving down the Redbubble share price on Thursday for no obvious reason, other than that the broader market is also having a fairly lacklustre day.

But looking back, the market has heard three pieces of price-sensitive news from Redbubble this year.

The first was the company’s half-year results, which were released in February. Despite showing growth across key metrics, the Redbubble share price fell on the results, closing the day 16% lower than its previous session.

In March, Redbubble replaced Coca-Cola Amatil Limited in the S&P/ASX 200 Index (ASX: XJO). Coco-Cola Amatil was delisted from the ASX following a takeover.

Finally, on 22 April, Redbubble released its third-quarter and year-to-date update. The company seemed to be performing well year to date. For the 9 months ended 31 March, Redbubble saw a gross transaction value of $576 million and marketplace revenue of $456 million. That’s 85% and 82%, respectively, higher than the previous corresponding period.

However, for the third quarter of the 2021 financial year, the margin between the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) and its marketplace revenue was only 2.2%.

As The Motley Fool reported at the time, this may have turned investors away. It definitely seemed to weigh on the Redbubble share price, which fell to close 23% on the day of the update.

Redbubble share price snapshot

This year has been a tough one on the ASX for Redbubble shares. Currently, they are 43% lower than they were at the start of the year. However, they have gained 129% since this time last year.

Based on the current Redbubble share price, the company has a market capitalisation of around $859 million, with approximately 275 million shares outstanding.  

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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